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economy in today's viewer mail. it's all ahead on today's first business. >> you're watching "first business," financial news, analysis, and today's investment ideas. >> good morning, thanks for joining us. better than bernankeets a second shot at his job after thursday's vote in the u.s. senate. he is confirmed for a second four year term. it happened by a much wider margin than expected. >> shocking after all that heated rhetoric. make crow soft with better than expected earnings. traders have been loving selling on the news. >> troubles for toyota continue to mount. the recall for toyota is extended to china and europe because of problems of floor mats and gas pedestrian also on several models. >> despite the still struggling
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economy, president obama told us this week in his state of the union address he remains bullish on america and believes the worst of the storm has passed. oftentimes the markets are the first predictor of what's to come for the economy. we checked in for traders on the market's view on the state of the union. january is turning into a chilling month for the market. the dow and s&p 500 seem to be falling faster than a mid winter snow with the dow dropping more than 500 points since january 19. some believes so goes january, so goes the rest of the year, which might not bowed well for the economy. >> a lot of times what you do is reduce risk when the market is low. we've seen the hotter money come out of the market. >> charlie neddos is closely watching the rises and falls in the crude oil market. oil tends to go up in anticipation of a growing
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economy and drop when tough times might go ahead. within the past three months, oil shot up, but since has drifted down. neddos is watching footloose for the economy by way of the job market. >> i'm looking at average hourly work week in terms of looking for some up particular. generally what you see before an employer takes on a new hire, they're going to put people on overtime. overtime ticked up from three hours to 33 hours a week. he sees a trend of temp workers being added to the work force. trader jamie tyrel says this.
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>> companies are starting to hire people back. it's not at strong as the market is hoping for. >> he said investors and traders were com placent about the market as the s&p soared. now he's noticing a change. >> people are starting to protect against a major pullback. >> those people may be right or they may be wrong. one of the sectors being watched is the financial sector. >> the financials let us down. they led the rally back and now are seen on much weeker footing. >> he says it appears for now we can expect a skittish up and down market to continue for
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sometime. >> let's check the financial markets with joe kinahan. >> good morning. >> are the slide in stocks continuing for the second week here, what do you think of the selling pressure and the force behind the selling? >> last night we did have the sell off. >> the vix, the size didn't increase for the amount of sell off. because there was not a rice in volatility, the sell off can continue. it loft steam at the end of the day. we saw a bit of a rally up because we started selling off the last 10 or 15 minutes of the day. >> economists are expecting a fou4%growth. >> if we come up short, i would expect us to sell off on that. we're looking at this so much
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more particularly as we rack up bigger and bigger deficits. everything you read is what percentage of our g.d.p. are our debts right now. it becomes very important after the state of the union address as to how much more debt we are taking on compared to how we are growing. >> i think we saw these bonds be a little bit of a debacle. whenever there is uncertainty, people turn to the dollar. we saw it in the very worst of things last fall. >> thank you so much. >> president obama took to the road after his state of the union address this week trying to drum up support for the issues on his agenda, especially job creation. thursday, mr. obama spoke at a town hall meeting in tampa, florida, promising to work with republicans on the major issues. >> i want the republicans off the sidelines.
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i want them working with us to solve problems facing working families. not to score points. i want a partnership. what we can't do, though, i don't want grid lock on issue after issue after issue, when there are so many urgent problems to solve. >> as congress gets back to work, republicans are warning that spending should not get out of control. here's a clip from wednesday night's republican response. >> what government should not do is pile on more taxation, regulation, and litigation to kill jobs and hurt the middle class. the amount of debt is on pace to double in five years and triple in 10. this is simply unsustainable. >> the democrats continue to blame republicans for saddling america with trillions in debt because of policies and actions under the bush administration. >> coming up on friday economic
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calendar is that fourth quarter g.d.p. estimate as well as consumer sentiment. straight ahead here on "first business," viewer mail, why some people are taking issue with the large amount of money the united states hands out to other countries. one of the largest mortgage lenders is trying to help homeowners face foreclosure. that's coming up next.
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fallinbehind on their mortgages, no one profit groups are teaming up to save homeowners from foreclosure. joining us now to talk about this is dwight robinson, a, sr. vice president of community relations at freddie mac. your company is joining 13 no one profit groups to help struggling homeowners. how do you plan to help them? >> we're really excited about our initiative working with non-profit groups for home buyers who may have become discouraged, disillusioned or frustrated with the process of trying to save their homes and to avoid foreclosure. we've teamed up with the non-profits to provide phone counseling that will put people in position to enhance and
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increase their ability to save their home. >> how can homeowners reach out to you? >> two ways. freddie mac borrowers will receive a letter in the mail about how to contact the non-profits. secondly, they'll get a call from the non-profits. thirdly, they can go to freddie to get information on how to avoid foreclosure. >> i want to talk about the president's loan modification program. the number of trial modifications started under mr. obama's plan totals more than $900,000 since may of 2009. only 7% has been turned into permanent modifications. would you say that the pace of that program is still slow? >> what we know here is that, and what we're excited about is we think the pace is picking up.
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we know that the average homeowner has saved under that program $500 per month in monthly mortgage payments. secondly, more than a million homeowners have been assisted by the program. this initiative we're announcing today will enhance that, will provide people with information that will increase their likelihood of moving into a mortgage modification under the making home affordable program and achieve an affordable rate at about 31% within the program to be successful. >> i want to talk about another interesting trend going on under mr. obama's home modification program. a large pores of these homes being modified are owned by freddie mac and fannie mae. you compare that, this clearly
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shows that servicers don't want to take a hit on modifying their own loans, but they would gladly modify fanny or freddy loans. do you see a problem with that? >> we know that freddie mac and fannie mae are focused on and have a priority in making the making home affordable program a success. the announcement we're making here today is an enhanced and increased effort on our part to do that. we want to leave no stone unturned as we try to help homeowners find a path to be successful in achieving a mortgage modification. they can receive counseling from the non-profit, and then the non-profits will work with stuart home finance in order to work through the process with the servicers to achieve a mortgage modification. so, this is one more effort to
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increase and enhance the success of that program. >> dwight, how would you personally grade the job that loan servicers have been doing under the president's homeowner rescue program? >> we want to focus on freddie mac and what freddie mac is doing. our leader, our new c.e.o. has said this is our number one priority. we're making it so our staff is focused on this effort, and we think that by engaging with trusted non-profit counselors that we can enhance and improve our success. >> the loans that are defaulting again within six months after being modified, that's still a problem. do you agree? >> absolutely. that's one of the beauties of this program. we're not simply looking at the
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mortgage. we're looking at the total housing circumstance that a family's budget engages, whether you're talking about auto loan or credit card or student loan, if that's an issue. we are counseling across the board to achieve a circumstance that enhances increased affordability. >> thank you for joining us here, dwight robinson, sr. vice president of community relations at freddie mac. >> we have we give you an update on the days market action about two hours into the trading day. at 4:00 p.m. eastern. join us at
4:47 am >> which is a better move for investors over the past five years. that's next. óóññ;ñ;ñ;xñxññ
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female announcer: from jennifer, a sweeping chaise sectional at the unheard of price, now just $399. with luxurious styling and so affordable, $399. from jennifer. time now for our favorite segment, viewer mail. let's look at a couple of the calls from viewers concerned with all the foreign aid given other countries. >> i believe our country needs
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aid. leave the other countries alone and help our own country out. taxpayers, they have to pay for that? that's ridiculous. >> that is a call in reference to the situation in haiti. we received a second call from another viewer that expressed much the same sentiment. >> it's a shame that no president wants to take care of their own back yard. the other countries aren't doing anything for us. with your economy failing, if we had major catastrophes here more than one at a time, then who would help us? no one. >> again, paul, we are assuming that these two calls are relating to the haiti earthquake. all the other aid that the united states gives to foreign country. >> there is a perception that the united states is a very wealthy country and should take the lead when other nations
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experience natural disasters. our wealth really was up more than 10 years ago. today's america is $12 trillion in debt. i want to take a quick look at the aid that the government has given to haiti. $165 million given by the united states. 27 nations combined given $575 million. there is a break down of other countries with total aid reaching $1 billion. there's been criticism here with china only contributing about $4 million in aid to haiti. the question is should china take a greater role, since the country is making billions from its economy. >> i take issue with the statement that other countries don't come to the aid of the united states. hurricane katrina, what other
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countries did after hurricane katrina, over $126 million from fort donor nations came after that disaster in new orleans. take a look at it right there. even china helped out the united states with $5 million. >> other second caller mentions that president obama not want to go take care of our own back yard, so to speak. we want to point out that of course obama is pushing to help repair our economy. in the state of the union address he called for a new jobs bill. whether you agree with mr. obama or not on what he's trying to do, i don't think you can say that he's not trying to help us in our own back yard. >> certainly it's in his own best interest if he tries to help the economy. it will help him in the next election. >> the next viewer is concerned about wal-mart and target. he says plot these two against each other for the past five years, both the same performance, both essentially unchanged over the five years,
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two very different paths to get there. question, do you want to play offense or defense? >> it's an interesting question. lets look at the performance, five year performance between wal-mart and target. wal-mart up 1.3%, target actually doing a better job up 5% over the past five years. >> people often group these stores together. they have different strategies. target dead indicates 20% of its shelf space to food. wal-mart has a much higher percentage. >> thank you for sending us your comments, emails and calls. keep it coming. call us at 312-660-8317 or
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oh! blue! time! time out. i touched it. i touched the ball before it went out, coach. come on, alex, the ref did not call that! you gotta be kidding me, alex! it's the championship game! talk to him, coach. i touched, it's their ball. don't foul them when they inbound. team on 'three.' one, two, three. nice going, alex. sorry coach. alex! good call.
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good call. us at to help avoid cavities and root canals, i use act.
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the flouride mouthwash dentists recommend. (announcer) act works with calcium to rebuild enamel. to help avoid dental problems, act daily. talk" is dan deming. good morning to you, dan. >> good morning, angela. >> what's going on with that wild selling in the s&p lately? >> continued down side in the market. we're seeing a rotation, the dollar gaining strength, emerging markets gaining pressure. yesterday, we saw the s&p trade below 1080. it was able to hold, 1078 was
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the low. 1084 was the close. we'll have to see the g.d.p. number coming out. it will set the trading today. there is a lot of uncertainty in the market. >> there is. i think there is a lot of anxiousness now that we have come back down and broken blow 1100 on the s&p 500. i think it will further test, especially if the g.d.p. test isn't as strong as people think it is. if we close below 1080, i certainly think signals not a very good start to the next week. >> have a great trading day. could be a little crazy out there. >> thanks for joining us everyone. have a great weekend, and we'll see you monday.
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